Biden-Harris Administration Awards CHIPS Funding to
The U.S. Department of Commerce has finalized CHIPS Incentives Program funding for BAE Systems and Rocket Lab to enhance semiconductor production for national security and space applications. BAE Systems Electronic Systems will receive $35.5 million, while Rocket Lab will gain $23.9 million. These investments aim to modernize manufacturing facilities, expand production capacity, and strengthen the domestic semiconductor supply chain.
BAE Systems will upgrade its Microelectronics Center in Nashua, New Hampshire, a Department of Defense-designated Trusted Foundry. The improvements will quadruple the production capacity of Monolithic Microwave Integrated Circuit (MMIC) chips used in advanced military aircraft and satellites. The project includes replacing aging tools with advanced technology, reducing modernization timeframes, and mitigating risks of operational disruption for mission-critical systems.
Rocket Lab will expand its Albuquerque, New Mexico, facility to increase production of space-grade solar cells by 50% within three years. These high-efficiency compound semiconductors power key U.S. space programs, including NASA’s Artemis missions and defense-related satellites. The investment will also create over 100 highly skilled manufacturing jobs and enhance the nation’s ability to meet growing commercial and national security demands.
• BAE Systems:
• Award amount: $35.5 million
• Purpose: Modernize Nashua, NH Microelectronics Center
• Outcomes: Quadruple MMIC chip production, reduce project timelines, mitigate operational risks
• Rocket Lab:
• Award amount: $23.9 million
• Purpose: Expand Albuquerque, NM, solar cell production facility
• Outcomes: 50% production increase, 100+ jobs created, bolster space-grade solar cell supply
“This investment marks a significant step forward for the modernization of our Microelectronics Center, enhancing our national security and American technological leadership,” said Cheryl Paradis, Vice President of FAST Labs at BAE Systems.
